Estranged Wife Uses Surveillance Camera to Secretly Record Seed Phrase, Steals 2323 Bitcoin; Husband Files Lawsuit in Anger

A man in the UK accused his wife of secretly recording his seed phrase through home surveillance cameras and stealing $172 million worth of Bitcoin. The High Court ruled that traditional “conversion tort” does not apply to digital assets, but the case can still be prosecuted through other legal channels.
(Background: After connecting to hotel public WiFi, my wallet was looted)
(Additional context: Ethereum Foundation establishes “Post-Quantum Security” team! Offering $2 million to prevent quantum hacking)

Cold wallets are considered one of the safest ways to protect cryptocurrencies, but a British man’s 2,323 Bitcoins were stolen under his own home surveillance cameras.

According to The Times, UK resident Ping Fai Yuen accused his separated wife, Fun Yung Li, in August 2023, of recording him entering his 24-word seed phrase while operating his Trezor hardware wallet via home CCTV, then transferring all assets. At the time of theft, the Bitcoin was worth about $60 million; it has now surged to approximately $172 million.

The plaintiff recorded a conversation at home after a warning from his daughter, discussing theft and money laundering. Police later found multiple hardware wallets at the wife’s residence. The stolen funds are spread across 71 non-exchange addresses and have not moved since December 21, 2023.

Court Rejects “Conversion” Claim, Digital Assets Difficult to Fit into Traditional Tort Law

Regarding this case, UK High Court Judge Cotter made a key ruling on March 10, dismissing the plaintiff’s “conversion” claim. According to UK law firm Rahman Ravelli, under traditional UK law, conversion only applies to tangible property.

Although the UK passed the Property (Digital Assets etc) Act 2025 in December 2025, officially recognizing cryptocurrencies as personal property, the judge stated this does not overturn the legal precedent that “conversion tort applies only to physical assets.”

Case Still Can Proceed via Alternative Legal Avenues

While the conversion claim was dismissed, the court still allows the case to proceed under other legal grounds such as “unjust enrichment,” “breach of confidentiality,” and “presumed trust,” indicating the legal system is seeking a balance between traditional frameworks and new technology.

This case highlights the vulnerabilities in digital asset security: even the most secure hardware wallets can be compromised in physical environments monitored by surveillance devices. With the case allowed to continue, it may become an important legal precedent for recovering digital asset rights in the UK.

As of press time, Bitcoin is valued at approximately $75,139.